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THE EU - EGYPT ASSOCIATION AGREEMENT AGRICULTURE & TEXTILES: 

THE EU - EGYPT ASSOCIATION AGREEMENT AGRICULTURE & TEXTILES

Agriculture: 

Agriculture

Context: 

Context AA and Agriculture Context: Multi-functionalilty of agriculture for the EU: sui generis (national security, landscape, biological farming,...) BUT: Efforts => CAP reform, adopted in June 2003.

Context: 

Context Main principles of the CAP reform : Move from price support towards direct Income support for indiv. farmers decoupled from production, linked to env., food safety and health standards designed to help small farmers (landscape), reduction in direct payments for bigger farms

Context: 

Context With CAP reform, EU is now more in line with WTO you can see shift from product to producer support (less distorting)

EU-Domestic Support: 

EU-Domestic Support

US-Domestic Support: 

US-Domestic Support

Context: 

Context WTO - EU has made recent offer, concerning Agric. this contains: Very substantial cuts in trade-distorting subsidies (CAP reform) Sharp tariff cuts to improve market access, but with flexibility EU is ready to put on the table all export subsidies (no a priori exclusions) IF: acceptable outcome on market access, domestic support and non-trade concerns, and we get strict parallelism for all forms of export subsidisation

ACCESS TO EUROPEAN MARKETS: 

ACCESS TO EUROPEAN MARKETS EU absorbs around 85% of Africa’s and 45% of Latin America’s agricultural products It is of the EU’s interest that third countries export to the EU European consumers demand high level of health protection EU ensures the EU food legislation is in line with the SPSA of the WTO Third countries and establishments must accomplish with EU food safety rules to be allowed to export

Slide10: 

Guidelines to explain the EU’s import requirements produced by the Food and veterinary Office: http://europa.eu.int/comm/food/fvo/pdf/guide_thirdcountries_en.pdf

European Food Safety Authority EFSA: 

European Food Safety Authority EFSA

EFSA: 

EFSA Need of a central organisation in the EU dealing with food safety and control mechanisms Created in 2002 by the Commission Regulation 178/2002 Will be fully operative by January 2007 Headquarters in Parma, Italy

STATUS OF EFSA: 

STATUS OF EFSA Neither part of the Commission nor answerable to it Will take over all responsibilities of the existing Standing Committees Independent Scientific Body Scientific opinion may be requested by Commission, European Parliament or MS Also could start investigations on its own initiative

MAIN TASKS OF EFSA: 

MAIN TASKS OF EFSA Provide the EU institutions and MS with independent information, advice and support Promote and coordinate the development of uniform risk assessment methods Collect, collate, analyse and summarise data Identify emerging risks Build European networks Greater Harmonisation of National Control Systems Enhance dialogue between consumers and stakeholders Overlook international dimension of the EFS rules

Textiles: 

Textiles

Slide16: 

Industrial Goods: - for Egyptian ind.prod. to the EU: immediate free access - for EU ind.prod. into Egypt: gradual dismantling 4 lists of products with different time schedules, (max. transitional period: 15 years)

In Practice: 

In Practice For Egyptian TEXTILES into the EU: 100% customs duties reduction for textiles No tariff quotas Exceptions: raw silk and silk waste, wool and animal hair, raw cotton, waste, cotton carded or combed, raw flax and raw hemp, as considered agricultural products but not relevant (0% applied tariff rate).

In Practice: 

In Practice For EU TEXTILES into Egypt: Customs duties shall be gradually abolished starting on 1st January 2009. By 1st January 2016 EU textiles shall enter into Egypt free of any customs duties. First two years: 5% duty reduction each year Following years: 15% duty reduction each year

Examples: 

Examples

LATEST EGYPTIAN DECREES CONCERNING TEXTILES : 

LATEST EGYPTIAN DECREES CONCERNING TEXTILES

New Decrees: 

New Decrees Min. Foreign Trade Decree 923/2001 (OJ 297, supplement C of 31.12.03): Lifts the ban on imports of garments, their accessories and other textile products Presidential Decree 35/2004 (OJ 3, supplement B of 20.01.04): Establishes WTO bound rates for textiles, meeting Egypt’s commitments for 2004 and 2005 Min. Foreign Trade Decree 68/2004 (OJ 31-B(bis) of 12.02.04): certain Environmental and Labour Safety standards have to be met to register factories. Establishes a registry at GOIEC for textiles factories licensed to export to Egypt. …

New Decrees: 

New Decrees Min. Foreign Trade Decree 263/2004: Excludes a list of certain textile products (jute, horsehair, bast, for carpets, vocational protection, life jackets,...) from the obligation to obtain a license to export to Egypt Min. Foreign Trade Decree 284/2004 (OJ 100 of 9.05.04): Amends MOFT Decree 68/2004 stating that expenses of technical teams should be covered by the inspected factory Min. Foreign Trade 285/2004 (OJ 100 of 9.05.04): Registers automatically a list of EU and US companies at GOIEC’s registry for textile exporters to Egypt

Useful Information: 

Useful Information EU-Egypt Association Agreement (on EC Delegation’s Website): www.eu-delegation.org.eg/en/eu_and_country/association.htm Customs Website: www.customs.gov.eg Ministry of Foreign Trade: www.moft.gov.eg/English/ftrade/index.stm European Information Correspondence Centre (EICC): Industrial Modernisation Centre, 1195 Cornish El Nil. Tel:+202 5770090, Fax:+202 5772870 E-mail: info@eicc.org.eg Industrial Modernisation Programme: www.imc-egypt.org.eg EU Export Helpdesk for Developing Countries: http://export-help.cec.eu.int EU Standards: www.newapproach.org Eurostat: www.europa.eu.int/comm/eurostat Enterprise Website: www.europa.eu.int/comm/enterprise World Customs Organisation: www.wcoomd.org

THE EU - EGYPT ASSOCIATION AGREEMENT AGRICULTURAL & TEXTILE PRODUCTS: 

THE EU - EGYPT ASSOCIATION AGREEMENT AGRICULTURAL & TEXTILE PRODUCTS

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